Critical Comparison: ANA (OTCMKTS:ALNPY) and Japan Airlines (OTCMKTS:JAPSY)

Japan Airlines (OTCMKTS:JAPSY) and ANA (OTCMKTS:ALNPY) are both mid-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Japan Airlines and ANA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Airlines	1	0	0	1	2.50
ANA	0	0	0	0	0.00

Volatility and Risk

Japan Airlines has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, ANA has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Dividends

Japan Airlines pays an annual dividend of $0.17 per share and has a dividend yield of 1.8%. ANA pays an annual dividend of $0.06 per share and has a dividend yield of 1.6%. Japan Airlines pays out 17.9% of its earnings in the form of a dividend. ANA pays out 15.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Japan Airlines and ANA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Japan Airlines	6.48%	11.17%	4.29%
ANA	6.30%	12.88%	4.05%

Earnings and Valuation

This table compares Japan Airlines and ANA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Japan Airlines	$12.11 billion	0.68	$706.45 million	$0.95	9.88
ANA	$14.85 billion	0.60	$1.01 billion	$0.39	9.79

ANA has higher revenue and earnings than Japan Airlines. ANA is trading at a lower price-to-earnings ratio than Japan Airlines, indicating that it is currently the more affordable of the two stocks.

Summary

Japan Airlines beats ANA on 8 of the 13 factors compared between the two stocks.

About Japan Airlines

Japan Airlines Co., Ltd., together with its subsidiaries, provides scheduled and non-scheduled air transport services in Japan, Asia, Oceania, North America, and Europe. The company operates through Air Transportation and Other segments. It offers passenger, ground handling, cargo and mail handling, and maintenance services. The company is also involved in the aerial work and other related business; airport peripheral business; and sale of travel package tours. As of March 31, 2023, it operated a fleet of 224 aircraft. The company was formerly known as Japan Airlines International Co., Ltd. and changed its name to Japan Airlines Co., Ltd. in April 2011. The company was founded in 1951 and is headquartered in Tokyo, Japan.

About ANA

ANA Holdings Inc., together with its subsidiaries, provides air transportation services in Japan and internationally. It operates through Air Transportation, Aviation-Related Business, Travel Business, and Trading Business segments. The Air Transportation segment offers regular and irregular air transport of passengers, cargo, etc. on domestic and international routes. The Aviation-Related Business segment provides services incidental to air transportation, such as airport handling and maintenance. The Travel Business develops and sells travel products, as well as plans and sells package travel products. The Trading Business imports and exports aviation-related materials, as well as sells through stores and mail-order channels. The company was formerly known as All Nippon Airways Co., Ltd. and changed its name to ANA Holdings Inc. in April 2013. ANA Holdings Inc. was incorporated in 1920 and is headquartered in Minato, Japan.